What to Expect If You Are Accused of Tax Evasion

Most evidence obtained by the Internal Revenue Service (IRS) in tax evasion cases comes from the mouth of the accused. It’s important to consider the legal fees, penalties, and possible jail time if you purposely report your yearly income incorrectly. If you are accused of tax evasion, you can expect the IRS to follow through with their investigation in a very thorough fashion.

Keep Calm and Hire Help

The IRS will send a field agent to visit the taxpayer in order to question the alleged fraud. You can prepare yourself against this encounter by hiring an attorney experienced in tax or criminal tax cases. Anyone who questions your business should be forwarded directly to your attorney. The IRS must prove the tax return was fraudulent under the taxpayer’s own admission before they can claim it as tax evasion.

Fraud vs. Negligence

Fraudulent taxes are a “willful act done with intent to fool the IRS.” In most cases, the IRS will give you the benefit of the doubt. However, performing certain tasks such as keeping multiple financial books, claiming a false social security number, and reporting fake dependents are all examples of fraudulent cases. Any case where an individual willfully attempts fraud can result in fines of up to $100,000 and five years in jail.

Closing Thoughts

Keeping good business records, hiring a tax or criminal tax attorney, and recognizing fraudulent activities will help balance your options when it comes to being accused of tax evasion. Tax evasion is a serious offense to the IRS and should not be thought of lightly.

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